Textile Industry in USA Essay Example | Topics and Well Written Essays - 4750 words

Textile Industry in USA - Essay Example The industry comprises various, fragmented set of services that range from small, family-owned and-operated facilities that normally employ older, conventional manufacturing systems to giant integrated mills that employ the most modern machinery and manufacturing equipment. In 1996, Mexico pushed China aside as the major U.S. supplier of textiles and garments. Textiles and apparel are responsible for about 20 % of the U.S. trade loss. Recently, the loss in textile and apparel business was estimated as $52 billion. In accordance with the WTO, in 1998, the U.S. imported $69.1 billion worth of textile merchandise making it the largest importer. Exports are about $17 billion. Moreover, the Asian financial predicaments have impacted the U.S. textile industry. The American Textile Manufacturers Institute (A.T.M.I.) has resolved to firmly dispute against the new rush of Asian imports into the USA, following the depreciation of Far Eastern currencies. Apparel imports from Asia are up 12 % for 1998 to 5.9 billion square meters. In addition, Asian imports of fabrics, yarn and home fixtures have risen by 16 % to reach 6.1 billion square meters. Accordingly, U.S. fabric manufacturer Burlington declared in January 1999 that it would decrease its manufacturing facility by 25 %, as a result of bigger Asian garment imports in the U.S.A. Seven factories were shut, and 2,900 people fired i.e. 17 % of the labor force. Burlington Industries hires 17,400 persons in the U.S.A., 18,900 all over the world. It is anticipated that the U.S. textile and apparel industry's has experienced a decrease in employment from 1.5 million people in 1990 to 985,000 in 1999. Nevertheless, it is believed that as the World Trade Organization is more phased in and business impediments continue to decrease, the position for the textile industry on the global side looks assured for both exports and imports. Moreover at the same time as the economic predicament in Asia may turn up ostensibly to intimidate the textile industry with a rush of cheap goods from those nations, some crucial aspects make sure that the industry will be less at risk. The central of these aspects is the North American Free Trade Agreement (NAFTA). Statistics show that the agreement has already facilitated quickens businesses between the U.S., Canada and Mexico, with imports from Canada and Mexico representing 21.1 % of all U.S. textile imports. Especially important, U.S. exports to the two nations comprise 45.6 % of all U.S. textile exports. As there has been a common drop in demand for U.S. made products, this enlarged trade among North American nations will help to reduce the shock that the crisis might otherwise have on U.S. producers. In contrast, U.S. textile importers and developing countries have blamed the U.S. government of not fulfilling global Agreement on Textiles and Apparel (ATA). A key component of the ATA requires the phase-out of quotas on textile and apparel trade. Various American importers and retailers, in addition to the developing countries that export goods to the USA, have condemned the U.S. government for continuing quotas on various imports until the end of the 10-year phaseout period, which started in 1995. On November 15, 1999, the USA and